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Income Tax Appellate Tribunal, “D”, BENCH MUMBAI
Before: SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI, JM Shri
आदेश / O R D E R PER R.C.SHARMA (A.M):
This is an appeal filed by the assessee against the order of CIT(A)- 36, Mumbai dated 17/01/2017 for A.Y.2010-11 in the matter of imposition of penalty u/s.271(1)(b) of the Income Tax Act/ 2. Nobody appeared on behalf of the assessee inspite of giving the opportunity. 3. We have heard learned DR and found that penalty of Rs.10,000/- was imposed by AO for non-compliance with the notices.
Shri Deepak Kumar Kanjibhai Patel 4. By the impugned order, CIT(A) confirmed the penalty imposed u/s.271(1)(b). Hon’ble Supreme Court in the case of Hindustan Steels (25 STC 211) observed that an order imposing penalty for failure to carry out a statutory obligation is the result of a-quasi-criminal proceeding, and penalty in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute.
From the record we found that during the period, cases were fixed by the AO. Assessee was not in the town, hence he could not provide details and compilation of submission before the AO at the point of time. However, subsequently assessee has filed all the details and assessment order was also passed u/s.143(3) of the Act. Keeping in view the reasonable cause for non-appearing before the AO on the date of notice, we direct the AO to delete the penalty so imposed u/s.271(1)(b) if the IT Act.
Shri Deepak Kumar Kanjibhai Patel
In the result, appeal of the assessee is allowed.